|
on Marketing |
|
Issue of 2017‒07‒23
eight papers chosen by João Carlos Correia Leitão Universidade da Beira Interior |
| By: | Tiziano Vescovi (Dept. of Management, Università Ca' Foscari Venice); Charlotte Pellizzari (Dept. of Management, Università Ca' Foscari Venice) |
| Abstract: | As they travel more, the Chinese consumers are making a rapidly-growing share of their luxury purchases outside the Mainland. There are several reasons that exhort Chinese luxury consumers to have their expenditures outside their home country, being economic, cultural and social. With so many Chinese visiting elegant store on their travels, luxury brands must try to provide consistent positioning in the outlets around the world. In order to analyze the impact of Chinese globetrotters on European luxury retailing, a research was made inside a Christian Dior shop in Venice, by mean of the observation of 346 consumer behaviors in a period of four months. The evidences from the observation of the Chinese consumer behaviors in the DiorÕs retail store in Venice underline some aspects should be analyzed and considered in facing the Chinese consumer going global. Despite the event limitations this research disclosed an additional aspect in the luxury goods buying behavior that is strictly connected with the globalization of the Chinese customer, influencing the sales strategy of western companies not only in China but also in their domestic markets. |
| Keywords: | Retailing, International marketing, Luxury marketing |
| JEL: | M31 |
| Date: | 2017–07 |
| URL: | http://d.repec.org/n?u=RePEc:vnm:wpdman:139&r=mkt |
| By: | Carin van der Cruijsen |
| Abstract: | For policymakers seeking to protect consumer data or financial stability and financial institutions that wish to keep their customers satisfied it is key to know consumers' attitudes towards payments data usage. This paper provides detailed insight into these attitudes based on unique surveys held among Dutch consumers. Privacy is considered an important payment instrument attribute, especially by low-educated, low-income, and elderly consumers and consumers who have little trust in other people or in their bank. Attitudes towards payments data usage depend on the context. For example, most people support the use of payments data to improve security or services but find sharing payments data with other companies unacceptable. Moreover, the latter practice would result in a significant decline of trust in banks. Depending on the purpose of the data use, attitudes relate to socio-demographic factors, online behaviour, satisfaction with the bank and perceptions of current data usage practices. Lastly, many consumers are unwilling to share their payments data with non-banks to use a payment app or get a financial overview. This holds especially for consumers with low trust in other people and in banks |
| Keywords: | privacy; payments data; consumer attitudes; consumer survey; banks; trust |
| JEL: | D14 D12 |
| Date: | 2017–07 |
| URL: | http://d.repec.org/n?u=RePEc:dnb:dnbwpp:563&r=mkt |
| By: | Chen, Yongmin; Li, Jianpei; Zhang, Jin |
| Abstract: | We study the role of liability in disciplining an expert's behavior in a credence good market. The expert, who can provide two potential treatments for a consumer's problem, may misbehave in two ways: prescribing the "wrong" treatment given his private information, or failing to exert proper effort to diagnose the problem. We show that under a range of liability rules, the expert will choose the efficient treatment based on his information if the price margins for the two treatments are close enough. Moreover, a well-designed liability rule can motivate the expert to choose efficiently both the treatment and the diagnosis effort. This efficiency result continues to hold when the expert's diagnosis effort generates only a noisy signal about the nature of the consumer's problem, provided the signal is sufficiently informative. |
| Keywords: | Credence goods, private information, diagnosis effort, undertreatment, overtreatment, liability |
| JEL: | D82 I18 K13 L23 |
| Date: | 2017–07–15 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:80206&r=mkt |
| By: | Joachim Freyberger; Bradley J. Larsen |
| Abstract: | This study provides new identification and estimation results for ascending (traditional English or online) auctions with unobserved auction-level heterogeneity and an unknown number of bidders. When the seller's reserve price and two order statistics of bids are observed, we derive conditions under which the distributions of buyer valuations, unobserved heterogeneity, and number of participants are point identified. We also derive conditions for point identification in cases where reserve prices are binding (in which case bids may be unobserved in some auctions) and present general conditions for partial identification. We propose a nonparametric maximum likelihood approach for estimation and inference. We apply our approach to the online market for used iPhones and analyze the effects of recent regulatory changes banning consumers from circumventing digital rights management technologies used to lock phones to service providers. We find that buyer valuations for unlocked phones dropped after the unlocking ban took effect. |
| JEL: | C1 C57 D44 L0 L96 O3 |
| Date: | 2017–07 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:23569&r=mkt |
| By: | Silvia Del Prete (Bank of Italy); Cristina Demma (Bank of Italy); Paola Rossi (Bank of Italy) |
| Abstract: | Nowadays Italian borrowers can choose among a variety of mortgage contracts. Using a special Bank of Italy survey on 400 Italian banks over the period 2006-2013, we analyse the supply of ‘non-conventional’ mortgages (loan-to-value ratio greater than 80 per cent, duration longer than 30 years or with a flexible maturity). We build a synthetic indicator measuring the degree of differentiation of mortgages across banks to examine how local market competition and bank-specific characteristics have influenced this process. Our findings – potentially influenced also by customer preferences we cannot control for – suggest that larger, less risky banks and those that have adopted scoring systems are more likely to offer non-conventional mortgages. Moreover, banks operating in more competitive markets and in markets where other banks offer non-conventional loans tend to diversify their supply more. Most of these indications are confirmed by analysing the quantities actually granted. These results suggest that the structure of the local markets does matter and that there could be a non-price competition effect among banks in providing differentiated mortgage contracts. |
| Keywords: | Households’ mortgages, financial crisis, bank heterogeneity |
| JEL: | G21 G01 D12 D14 |
| Date: | 2017–06 |
| URL: | http://d.repec.org/n?u=RePEc:bdi:opques:qef_383_17&r=mkt |
| By: | Efraim Benmelech; Adam Guren; Brian T. Melzer |
| Abstract: | We introduce and quantify a new channel through which the housing market affects household spending: the home purchase channel. Using an event-study design with data from the Consumer Expenditure Survey, we show that households spend on average $3,700 more in the months before and the first year following a home purchase. This spending is concentrated in the home-related durables and home improvements sectors, which are complementary to the purchase of the house. Expenditures on nondurables and durables unrelated to the home remain unchanged or decrease modestly. We estimate that the home purchase channel played a substantial role in the Great Recession, accounting for one-third of the decline in home-related durables spending and a fifth of the decline in home maintenance and investment spending from 2005 to 2010, together totaling $14.3 billion annually. |
| JEL: | E21 E32 G01 G12 R11 R2 R21 |
| Date: | 2017–07 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:23570&r=mkt |
| By: | V. Bhaskar; Robin Linacre; Stephen Machin |
| Abstract: | The economic functioning of online drug markets using data scraped from online platforms is studied. Analysis of over 1.5 million online drugs sales shows online drugs markets tend to function without the significant moral hazard problems that, a priori, one might think would plague them. Only a small proportion of online drugs deals receive bad ratings from buyers, and online markets suffer less from problems of adulteration and low quality that are a common feature of street sales of illegal drugs. Furthermore, as with legal online markets, the market penalizes bad ratings, which subsequently lead to significant sales reductions and to market exit. The impact of the well-known seizure by law enforcement of the original Silk Road and the shutdown of Silk Road 2.0 are also studied, together with the exit scam of the market leader at the time, Evolution. There is no evidence that these exits deterred buyers or sellers from online drugs trading, as new platforms rapidly replaced those taken down, with the online market for drugs continuing to grow. |
| Keywords: | dark web, drugs |
| JEL: | K42 |
| Date: | 2017–07 |
| URL: | http://d.repec.org/n?u=RePEc:cep:cepdps:dp1490&r=mkt |
| By: | Tatjana Mihailovic (Dept. of Management, Università Ca' Foscari Venice); Tiziano Vescovi (Dept. of Management, Università Ca' Foscari Venice); Andrea Pontiggia (Dept. of Management, Università Ca' Foscari Venice) |
| Abstract: | The aim of this paper is to determine if the standardization strategies, widely implemented by the luxury companies in international markets, can successuflly adopted in the Chinese Markets. In order to verify this statement, we analyse the luxury cosmetics industry in a market characterized by evident cultural differences. The cultural differences have been studied in term of beauty ideals and consumersÕ behavior and expectations. We study four western luxury cosmetics companies. Although the first moves were mainly shaped on replication and standardization, the cultural differences force the four western companies to transform their orientation towards adaptation. This finding was partially unexpected and suggests that for specific type of luxury products the adaptation and flexibility are required despite the drift to replicate the standardized marketing strategies. These results are consistent with those of other studies suggesting the need for a balanced approach of standardization and adaptation in managing the international strategies. |
| Keywords: | Cross Cultural marketing, International management, Luxury marketing |
| JEL: | M31 |
| Date: | 2017–07 |
| URL: | http://d.repec.org/n?u=RePEc:vnm:wpdman:140&r=mkt |